AGENCY

Fannie Mae/Freddie Mac are number one in lending when it comes to multi-family. They offer relatively high levels of leverage, low interest rates and certainty of execution to a broad range of borrowers.

Common Terms


Fannie Mae:


Loan Amont: Above $1MM
Term: 5, 7, 10, 12 year terms (Longer terms are available but will increase pricing)
Interest Only: Up to 10 years
Amortization: 30 years
Loan to Value: Up to 80%
Pricing: Based on relative US Treasury. Fixed and variable rates available
Occupancy: 90% occupancy of last 90 days (with restrictions on resident concentration).
Recourse Requirements: Non-Recourse
DSCR Requirement: 1.25x for standard markets and or 1.20x for top markets
Exit Options:
Assumption: Fully assumable
Supplemental Debt: Available 12 months from date of closing of first loan
Pre Payment: Yield Maintenance or Step Down

Freddie Mac:


Loan Amont: Above $1MM
Term: 5, 7, 10, 12 year terms (Hybrid options available)
Interest Only: Up to 10 years
Amortization:30 years
Loan to Value: Up to 80%
Pricing: Based on relative US Treasury, Fixed and variable rates available
Occupancy: 90% occupancy of last 90 days (with restrictions on resident concentration).
Recourse Requirements: Non-Recourse
DSCR Requirement: 1.25x for standard markets and or 1.20x for top markets
Exit Options:
Assumption: Fully assumable
Supplemental Debt: Available 12 months from date of closing of first loan
Pre Payment: Yield Maintenance or Step Down
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